As the United States embarks on a new term under the leadership of former President Donald Trump, the regulatory landscape for technology is set for significant transformation. With AI development, data privacy, and social media regulation at the forefront of the nation’s technological future, the incoming administration’s approach promises to reshape how these critical issues are addressed. The shift from the Biden administration’s focus on civil rights and stringent oversight to a more business-driven and deregulated approach raises questions about the future direction of tech law in the U.S.
The explosive growth of Artificial Intelligence (AI) has sparked a wave of regulatory scrutiny, driven by concerns around safety, privacy, and civil rights. Under President Biden, the administration pushed for a federal AI Bill of Rights, which laid out fundamental protections for citizens, including transparency in AI development and the imposition of safety tests. However, with Trump’s return to the White House, the regulatory stance is set to change dramatically.
The new administration has signaled a shift away from Biden-era policies, emphasizing the need for innovation and economic competitiveness over government intervention. Trump’s nominee to head the Federal Trade Commission, Andrew Ferguson, has made it clear that AI regulations should not stifle free speech or innovation. The administration is likely to focus on deregulation at the federal level, leaving states to pick up the slack. In fact, 45 states introduced AI-related bills in 2024, with states like Colorado passing laws to address algorithmic discrimination. Moving into 2025, state lawmakers may step up efforts to regulate AI through specific laws targeting automated decision-making, facial recognition, and other advanced technologies.
The question of data privacy remains one of the most pressing concerns for lawmakers, as the U.S. grapples with a fragmented regulatory landscape. In 2024, the American Privacy Rights Act, a bipartisan proposal, was introduced in Congress, offering a potential path forward for federal data privacy legislation. The bill seeks to standardize privacy laws across states and create clearer protections for consumers. However, in an era of political gridlock, it remains uncertain whether federal lawmakers will reach consensus.
States have already taken the lead in enacting comprehensive data privacy laws. Since California introduced the Consumer Privacy Rights Act in 2019, 19 states have passed similar laws, but the scope and enforcement vary widely. This patchwork approach creates confusion for businesses and consumers alike. While federal action is anticipated in 2025, the Biden administration’s executive order on cross-border data transfer restrictions, aimed at protecting national security, may continue to gain traction in the new Trump administration.
While the federal government may be slow to enact new laws, states have increasingly stepped up their efforts to enhance cybersecurity and protect sensitive data. Thirty states now have cybersecurity regulations in place, with California’s Privacy Protection Agency leading the charge in creating data protection standards. Moreover, several states have expanded health data protections beyond federal law, including Washington and Nevada.
The protection of children’s privacy online is another growing concern. States like California, Colorado, and Virginia have enacted legislation to safeguard young users’ data, with more states likely to follow suit in 2025. In the absence of strong federal regulation, states will likely continue to drive the conversation on cybersecurity and health privacy.
Social media regulation remains a battleground, particularly with respect to Section 230 of the Communications Decency Act, which shields platforms from liability for user-generated content. Under President Trump’s previous administration, there were efforts to modify Section 230, citing concerns that it allowed platforms to censor conservative viewpoints. The Biden administration, on the other hand, focused on increasing transparency and holding companies accountable for harmful content, including misinformation and hate speech.
Now, with Trump back in office, debates over Section 230 are expected to intensify. The administration’s deregulatory approach may lead to restrictions on content moderation policies in the name of preserving free speech. On the state level, California and Connecticut have introduced new laws requiring transparency from social media platforms on hate speech and misinformation. In 2025, these discussions are expected to continue, as both federal and state lawmakers grapple with how to balance platform neutrality and accountability.
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